Ecommerce Case Study: Free Shipping and Its Impact on Revenue

Background:

On this particular e-commerce platform, we initiated an optimization strategy for its product pages. The key change involved informing users whether their cart qualifies for free shipping or specifying the additional amount needed to reach the free shipping threshold.

Objectives:

  • To increase the rate of order completion.
  • To boost revenue per visitor.
  • To compare the effectiveness of this strategy on Desktop vs. Mobile platforms.

Methodology:

The test involved two main changes:

  1. Adding notifications on the product pages about the cart’s qualification for free shipping.
  2. Indicating the additional amount needed if the cart did not qualify for free shipping.

Data was collected and analyzed through various reports, focusing on conversion rates, revenue per visitor, and funnel performance.

Results:

Desktop Performance:

  • An 88.3% increase in the rate of order completion.
  • A 175.4% increase in revenue per visitor.
  • Statistical significance achieved at a 95% confidence level.

Mobile Performance:

  • No significant change in both the rate of order completion and revenue per visitor.

Overall Impact:

  • If tests were run only on Desktop, there would be a 27.1% increase in the rate of order completion and a 69.2% increase in revenue per visitor.

Conclusion and Recommendations:

Effective Strategy on Desktop: The strategy led to significant improvements in order completion rates and revenue on Desktop.

No Impact on Mobile: The same strategy did not yield changes on Mobile, suggesting different user behaviors or expectations on mobile platforms.

Recommendation for Rollout: Given the statistical significance and positive results on Desktop, we recommended implementing the changes live on Desktop platforms.

Further Research for Mobile: Investigate the reasons behind the lack of impact on Mobile and consider tailored strategies for mobile users.

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Author: Kurt Philip

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Hi, I’m Kurt Philip, the founder & CEO of Convertica. I live and breathe conversion rate optimization. I hope you enjoy our findings.

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